Credit Card Debt Relief

Sunday, March 11, 2012

Catalog Credit Cards For Bad Credit

Catalog Credit Cards - What Exactly Is It?

A catalog credit card is an unsecured card for those people who have a very low FICO rating. This tends to be people who have had financial trouble in the past, have filed for bankruptcy, or have a history of not meeting their agreed upon payments.

As with a traditional card, this type will give you a designated limit, which can range from a couple of hundred dollars to several thousand dollars. The main difference with this is that it is usually only accepted for buying products with the issuing company, either online or through a catalog.

This means that you are not able to use this in any store of your choice. However, you may be able to use it to order products from a store owned by the same group as the issuing company, and sometimes you will be given an introductory discount as an incentive. Members will also occasionally be informed of special offers and discounts that they are eligible for - for example 10% off your next purchase.

A downside is that it usually only reports to one of the credit bureaus. This means that even if you are managing your finances well, the other two primary bureaus will not be getting this information, and subsequently your future applications will not take this into account.

There are other problems with this type. The interest rates are often high, over 30% APR is not uncommon. You may also have to pay a monthly membership fee or a down payment when you apply, and sometimes you will incur extra costs on the merchandise that you are purchasing. Another point to consider is that the prices of the items in the catalog may already be higher than those in the retail stores.

Make sure you are aware of all of the relevant terms and conditions when applying. This card is easier to be approved for than a regular one, as it has lower approval requirements, but there are the usual minimum stipulations, such as you need to be over a certain age, have a social security number and can verify your identification.

Due to the costs and high interest rates involved, only consider this if you have exhausted all other options. Ask yourself whether you will buy products from the specified merchants, and whether you will be able to meet your payments on time. It is also essential that you are aware you don't just have to wait seven long years for negative items to be removed from your bureau reports. Therefore you are not doomed to a life of paying the high cost just because you made a few financial mistakes.

For more about Catalog Credit Cards or Damaged Credit Cards visit

No comments:

Post a Comment

Related Posts